If you’re wondering whether you can buy a private sale vehicle if you have bad credit, the answer is YES. Bad credit car loans can be used to buy brand new cars or used cars. There may be some limitations set by the lender such as the age, condition, and mileage of the car you are looking to purchase, but these are just safeguards that benefit you too. You don't want to buy a car that could easily break down on the road.
Requirement wise, you could need more paperwork when buying a private sale vehicle than you would when buying brand new or from dealerships. The lender needs to be certain that the vehicle is in good condition, free from financial liabilities and risk of repossession, and that they can recover their investment should the loan be defaulted on.
Here are some of the requirements;
Registration papers
Road Worthy Certificate, if required. Additionally, You can inspect the vehicle and use this checklist before deciding to buy it.
Proof of ownership which could include;
- The sellers driver’s license.
- Bank details.
Independent vehicle inspection from RACV, RACQ, Marshall, or any equivalent in your area.
Pictures of the vehicle.
Requirements vary from lender to lender. The more requirements there are, the better for you. If it seems a little overwhelming, working with a finance broker is best since they can assist you with all the paperwork.
Things to consider before applying for a bad credit car loan for private sale vehicle;
Getting pre-approved – Since you are looking for a bad credit car loan, knowing how much you can borrow will save you a lot of time and energy. It could be potentially heartbreaking if you have set your mind and heart on buying a particular vehicle, only to find out that you do not pre-qualify for your loan.
Interest rate and fees – You can’t expect a low interest rate due to a bad credit rating but you don’t have to settle with high interest rates either. Compare quotes from different lenders and choose the one that offers the best interest rate and the least amount of fees.
1800Approved is an award winning finance broker - Australian's Broker of the Year for 2016 ! We have helped tens of thousands own their dream car, boat jetski or caravan and/or finance business equipment. Let us help you finance your dream car today. Call us at 1800 277 768. No obligation.
Buying a private sale vehicle even if you have bad credit can be a good experience. You just have to make sure that the car is in good condition, free from danger of repossession, and that you can afford the monthly repayments.